Principles of Strategic Management

MODULE 7:
Corporate Diversification Strategies

These copyrighted materials are being used with the express written permission of Richard D. Irwin, Inc., and are intended for the benefit of enrolled students using Thompson & Strickland, Strategic Management: Concepts and Cases (9th edition). All rights reserved. Copyright 1995 Richard D. Irwin, Inc. These files originally were created in PowerPoint format, and they have been transformed into "browser-friendly" HTML format with Microsoft's PowerPoint Internet Assistant.
Slide Index
Slide 1: INTRODUCTORY GRAPHIC
Slide 2: MODULE OUTLINE
Slide 3: CORPORATE DIVERSIFICATION & CORPORATE STRATEGY
Slide 4: MAIN TASKS IN CRAFTING CORPORATE STRATEGY
Slide 5: FROM SINGLE-BUSINESS TO DIVERSIFICATION
Slide 6: THE GROWTH MATRIX
Slide 7: MAJOR GROWTH STRATEGIES (The Growth Matrix)
Slide 8: MARKET PENETRATION (Same Products, Same Markets)
Slide 9: MARKET DEVELOPMENT (Same Products, New Markets)
Slide 10: PRODUCT DEVELOPMENT (New Products, Same Markets)
Slide 11: STRATEGIC MANAGEMENT PRINCIPLE
Slide 12: COMPETITIVE STRENGTHS OF A SINGLE BUSINESS STRATEGY
Slide 13: COMPETITIVE STRENGTHS OF A SINGLE BUSINESS STRATEGY
Slide 14: RISK OF A SINGLE BUSINESS STRATEGY
Slide 15: WHEN DOES DIVERSIFICATION START TO MAKE SENSE?
Slide 16: WHEN DOES DIVERSIFICATION START TO MAKE SENSE?
Slide 17: WHY DIVERSIFY?
Slide 18: STRATEGIC MANAGEMENT PRINCIPLE
Slide 19: DIVERSIFICATION STRATEGIES
Slide 20: STRATEGIES FOR ENTERING NEW BUSINESSES
Slide 21: ACQUIRING AN EXISTING COMPANY
Slide 22: DIVERSIFICATION VIA INTERNAL STARTUP
Slide 23: DIVERSIFICATION VIA JOINT VENTURES
Slide 24: DRAWBACKS OF JOINT VENTURES
Slide 25: WHAT IS RELATED DIVERSIFICATION?
Slide 26: WHAT IS RELATED DIVERSIFICATION?
Slide 27: RELATED DIVERSIFICATION & STRATEGIC FIT
Slide 28: COMMON APPROACHES TO RELATED DIVERSIFICATION
Slide 29: APPEAL OF RELATED DIVERSIFICATION
Slide 30: APPEAL OF RELATED DIVERSIFICATION
Slide 31: CONCEPT: ECONOMIES OF SCOPE
Slide 32: CONCEPT: STRATEGIC FIT
Slide 33: TYPES OF STRATEGIC FIT
Slide 34: MARKET-RELATED FITS
Slide 35: TYPES OF MARKET-RELATED FITS
Slide 36: OPERATING FITS
Slide 37: POTENTIAL BENEFITS OF OPERATING FITS
Slide 38: MANAGEMENT FITS
Slide 39: CAPTURING BENEFITS OF STRATEGIC FIT
Slide 40: WHAT IS UNRELATED DIVERSIFICATION?
Slide 41: ACQUISITION CRITERIA: PURSUING UNRELATED DIVERSIFICATION
Slide 42: ATTRACTIVE ACQUISITION TARGETS
Slide 43: DOMINANT PHILOSOPHY OF UNRELATED DIVERSIFICATION
Slide 44: APPEAL OF UNRELATED DIVERSIFICATION
Slide 45: DRAWBACKS OF UNRELATED DIVERSIFICATION
Slide 46: HOW BROADLY SHOULD A COMPANY DIVERSIFY?
Slide 47: HOW BROADLY SHOULD A COMPANY DIVERSIFY?
Slide 48: DIVERSIFICATION & SHAREHOLDER VALUE
Slide 49: DIVESTITURE & LIQUIDATION STRATEGIES
Slide 50: STRATEGIC MANAGEMENT PRINCIPLE
Slide 51: DIVESTITURE & LIQUIDATION STRATEGY OPTIONS
Slide 52: TURNAROUND, RETRENCHMENT, & PORTFOLIO RESTRUCTURING
Slide 53: CORPORATE TURNAROUND STRATEGIES
Slide 54: CORPORATE TURNAROUND STRATEGIES
Slide 55: CORPORATE RETRENCHMENT STRATEGIES
Slide 56: CORPORATE RETRENCHMENT STRATEGIES
Slide 57: PORTFOLIO RESTRUCTURING STRATEGY
Slide 58: PORTFOLIO RESTRUCTURING STRATEGY
Slide 59: COMMENT: TREND IN DIVERSIFICATION
Slide 60: STRATEGY OF MULTINATIONAL DIVERSIFICATION
Slide 61: MULTI-NATIONAL DIVERSIFICATION: THE 1960s
Slide 62: MULTI-NATIONAL DIVERSIFICATION: THE 1970s
Slide 63: MULTI-NATIONAL DIVERSIFICATION: THE 1970s
Slide 64: MULTI-NATIONAL DIVERSIFICATION: THE 1980s
Slide 65: COMPETITIVE STRENGTH OF A DMNC IN GLOBAL MARKETS
Slide 66: COMPETITIVE STRENGTH OF A DMNC IN GLOBAL MARKETS

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